“Shark Tank” star Daymond John is known for making good investment deals. Now people are wondering if he decided to take advantage of the COVID-19 pandemic and the need for face masks to make a quick buck?
John, who was CEO and founder of the popular 1990s street fashion line FUBU, has been accused of price gouging in connection with N95 masks.
According to The Miami Herald, John was one of several “financially fortunate moguls trying to take advantage of people’s coins during this time of need. The story claims that John reportedly struck a deal with Florida officials to get The Sunshine State these coveted wears, but at a cost,” Hip Hop Wired reported.
A source told the Herald that John quoted Florida representatives $7 dollars per mask for 1 million masks. The masks typically cost just about $2 dollars per item.
Jared Moskowitz, director of the Florida Department of Emergency Management, admitted to the Herald that they were willing to pay whatever it took because of the need for masks and that prior deals to buy masks had fallen through. “This was not somebody off the street, this was Daymond John,’’ Moskowitz stated. “He came to me and said, ‘I’ve been in the clothing business. I have connections with factories in China.”
However, the $7-million dollar deal collapsed on April 13.
John went to social media to tell his side of the story.
“Today’s Miami Herald story and subsequent reports are false, inaccurate and shows a complete reckless disregard for the truth,” John said in a statement. “Let me be clear: Proper reporting would have shown I did not set any prices and that my team worked with the State of Florida to 1. Save lives 2. Help vet the overwhelming amount of incoming PPE offerings based on my manufacturing expertise and guide them how to best do this 3. Play a pivotal role to stop pricing gouging, and successfully identify potential fraud and theft of PPE products to protect taxpayers funds.”
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According to John, his company, The Shark Group, did nothing wrong. But 3M Company, who makes the masks, says it’s investigating and looking into possible lawsuits, Hip Hop Wired reported.
“3M is not aware of how the Shark Group would gain access to our respirators as it is not an authorized distributor of 3M products or one of our channel partners,” said Jennifer Ehrlich, communications manager for 3M. “3M list prices, which are published on our website, are far lower than what appears to have been offered to the State of Florida.”
Although there is no federal law expressly prohibiting price gouging, Trump issued an executive order on March 23 “instructing the Department of Health and Human Resources and the Department of Justice to enforce the anti-hoarding provisions of the Defense Production Act against those who hoard supplies of necessary health and medical resources,” The National Law Review reported.
